Joint mortgage, house purchase in sole name?

Carafan

Holly hobby thank you so much for your in depth reply. After taking on board the advice that Kingstreet gave I looked further into this issue and what you have said confirms what I have read.

I have extensive experience of buying and selling property however this is my first BTL so it's a bit of a steep learning curve and I want to make sure that everything is done correctly!

Thanks once again for so much great advice.

holly_hobby

Hi there,

No probs ....

TIC arrangements are usually seen in residential purchases, where individuals whom are not "life partners" are purchasing, or where there is a situation whereby partners wish to provide for children that are not a product of the relationship (ie where there are children with an ex/decd partner).

So, in itself a TIC arrangement is fairly common in the above circs, and ordinarilly actively encouraged - and as I say, the arrangement actually has no restriction on which mortgagors the mortgagee may pursue (which is all) or indeed to what extent (i.e its not restricted to the % of mortgagors ownership), in the event of default.

In the case of BTLs, and married or civil partners (where one indvidual has a higher tax exposure than the other), its actually std practice to effect a TIC such as advised, and thereby utilise HMRC Form 17 to mitigate tax exposure accordingly. Although it should be noted for the benefit of other readers, that this facility is not permitted for non-married/non-civil partners.

Hope this helps & good luck (do make sure that you have a decent contingency fund if you do go for a BTL, to cover periods of unoccupancy, emergency repairs, etc, and that you do your research before taking the plunge ) !

Holly xx